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I would get your hands on both and try them out if you haven't already.
I'd strongly encourage you to look at the D70s. In addition to coming with a significantly better kit lens, it has better controls (seperate wheels on the body for both aperture and shutterspeed adjustments) and the pop-up flash can be used to trigger remote flashes with Nikon's creative light system (the SB-600 and SB-800) - example photo using this method with the D70 and one SB-600.
The XT is a really nice camera, but some users have had complaints about it being too small for their hands and that the ergonomics can be a little difficult.
You're basically not just buying a camera with a D-SLR, you're buying into an entire system - lenses, flashes, and other camera bodies. Take a look at the camera bodies higher up in the Nikon and Canon line. Do you like the way they feel/operate? Ideally you would also think about the camera you'd be getting after this one (say a D200 or a 30D or a 5D), because the 350D/D50/D70s is just the first camera you'll be buying from that manufacturer, because you're going to start getting heavily invested in gear that is manufacturer specific.
To answer your question though: based purely on features of the camera bodies and making no consideration for anything else - I would choose the 350D over the D50 (but I would choose the D70s over both of them if that was an option).
We should be happy that it is so hard to decide between canon or nikon, because they both have a great slr lineup. You won't regret going either way.
I made my decision for canon because there was a better selection of lenses that I planned on getting. (I bought the canon 28-135 USM and sigma 15-30 along with the camera, to cover a good range; I couldn't find the same lens ranges for nikon at least anywhere near that price range)
do you have any previous camera lens. I decided to go with a new cannon because I had two lens from a old film cannon camera that would fit the new digital cannon camera
I'd be happy with either. But I use a 350D (XT over here) because like snooter, I had several lens from my old film EOS camera. What ever you decide - be sure to choose good lens.
I WOULD CHOOSE THE NIKON...HAVE AN 'FE'...OLD SCHOOL YA KNOW ....IT'S STILL A PICTURE TAKIN' BEAUTY..!!!...HAVE ALWAYS BEEN PARTIAL TO THE NIKONS..!!!
"THAT'S TWO THUMBS UP!!"
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I have a D70 and love it and if I had to chose between those 2 I would choose the D50. I also say check out the D70 as it is an awesome camera
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Nikon is announcing a new 10.2 mega pixel SLR in less than a month. If you can wait you're going to see the D70 prices drop me thinks. Of the ones you've mentioned I'd opt for the D50. The D70 with the kit lens is a better camera IMO.
EDIT >>> Here's a link to some info on Nikon's new body.
I have had the opportunity to use both cameras quite a bit as I am an amatuer photographer as well as a car nut ;-). The XT has many more options and would be compared to the D70 more then the D50 in my opinion. The D50 is a very basic SLR. I own an XT and it's only drawback is the size. I have large hands and it doesn't fit too well, but I just picked up the battery grip and now it's perfect. The 5D with a battery grip is too big, so it worked out fine.
For what it's worth, I would agree with 34Mini on the size sentiment. If you go with the Rebel XT, the battery grip is almost a necessity for individuals with larger hands.